1INTI International University, Malaysia. Email: i25035281@student.newinti.edu.my
2Educator, M.P.S. Jugdambi, SSS, Mauritius
3Assam Down Town University, Guwahati, Assam, India
Background: The application of Industry 4.0 technologies is now a key approach to enhancing the productivity, innovation, and competitiveness of the small and medium enterprises (SMEs). Although the government of Malaysia is actively promoting digitization in the country, there is seen to be an unequal distribution of Industry 4.0 implementation across regions especially in Sabah where SMEs experience infrastructural and resource-based issues. This paper examines some of the main determinants of Industry 4.0 adoption of SMEs in Sabah.
Objectives: The study gives priority to technological preparedness, financial capacity and governmental policy support as key determinants, whereas organisational preparedness especially the existence of talented human resource is regarded to have a key enabling influence. The research integrates the findings and concepts in the available literature and theories to analyse the extent these elements influence the willingness and capacity of SMEs to adopt superior digital technologies including automation, cloud computing, and data-driven systems.
Findings: According to the findings, digitization is set on technological readiness, and financial resources determine the possibility of firms investing in technology innovation. Initiatives by the government policy are also significant as they provide a favourable institutional setting that promotes digital adoption. Moreover, organisational capability is also significant to move the technological resources into practise.
Conclusion: The paper proposes the importance of collaborative work in the development of infrastructure, funding, and skill improvement of a workforce to increase the rate at which SMEs in Sabah adopt Industry 4.0.
Keywords: Financial Capability, Government Policy Support, Organisational Capability, Industry 4.0 Adoption, SMEs in Sabah, Malaysia, Economic Growth
How to cite this article: Lajinga EA, Teck TS, Geok LS, Fernandez RT, Toh JS, Veerunjaysingh S, Prakash S. Determinants of Industry 4.0 Adoption Among SMEs in Sabah. Int J Drug Deliv Technol. 2026;16(13s): 732-741. DOI: 10.25258/ijddt.16.13s.79.
Source of support: Nil.
Conflict of interest: None